A U.S. judge has ruled that Google holds an illegal monopoly on search, marking a significant victory for U.S. antitrust enforcers targeting Big Tech. This landmark decision sets the stage for a second trial to determine possible remedies, which could include breaking up Google’s parent company, Alphabet. Such a move would dramatically alter the online advertising landscape that Google has dominated for years.
U.S. District Judge Amit Mehta’s ruling in Washington, D.C., highlights Google’s monopolistic behavior, noting that the company controls about 90% of the online search market and 95% of searches on smartphones. This decision not only impacts Google but also sends a strong message to other tech giants under scrutiny from both political parties in the U.S.
The upcoming “remedy” phase could be extensive, potentially involving appeals to higher courts, including the U.S. Court of Appeals for the District of Columbia Circuit and the U.S. Supreme Court. This legal process could extend into next year or even 2026, indicating a prolonged battle ahead.
The ruling represents the U.S. government’s first major victory in its efforts to curtail the power of Big Tech. If successful, it could significantly reduce Google’s dominance and reshape the search engine market, paving the way for increased competition and innovation in the digital advertising space.
Alphabet’s shares dropped by 4.5% on Monday amid a broader decline in tech stocks driven by recession fears. The ruling by U.S. District Judge Amit Mehta, declaring Google a monopolist, significantly impacted Alphabet, whose Google advertising accounted for 77% of its total sales in 2023. Alphabet has announced plans to appeal the decision, arguing that the ruling acknowledges Google as the best search engine but unfairly restricts its availability.
U.S. Attorney General Merrick Garland hailed the decision as a “historic win for the American people” emphasizing that no company is above the law. White House press secretary Karine Jean-Pierre also praised the ruling, calling it a victory for competition and fairness on the internet.
Judge Mehta highlighted that Google had paid $26.3 billion in 2021 to maintain its search engine as the default on smartphones and browsers, securing its market dominance. He pointed out that the default search engine position is extremely valuable, and new competitors would struggle to compete unless they were willing to pay substantial sums to partners to offset any revenue losses from switching search engines.